Foreign exchange, raw materials, bonds – economic data weigh on the euro – economy

The euro suffered from weak economic data on Thursday. The common currency lost 0.4 percent to $ 1.0528. The purchasing managers’ index for the economy in the euro zone fell unexpectedly sharply by 2.9 to 51.9 points and thus to its lowest level in 16 months. The purchasing managers’ index for the German private sector fell by 2.4 to 51.3 points, a six-month low. In France, too, the economy grew more slowly than at any time since the slump caused by the Omicron wave in January. “The numbers are disappointing across the board,” said Helaba analyst Ralfcircul. The interest rate hike expected by the ECB in July is therefore out of the question, as monetary policy will have to take countermeasures due to record inflation of 8.1 percent in the euro area.

The situation on the gas market is making investors nervous. Due to reduced deliveries from Russia, the federal government activated the second stage of the gas emergency plan. Until a sustainable alternative for Russian gas is found, further price increases must be expected, said stockbrokers. The price of European natural gas rose by 3.5 percent to EUR 131.65 per megawatt hour. Since the beginning of the month, the gas price has increased by around 50 percent.

Industrial metal prices came under renewed pressure. The metals markets are all about a looming recession, said Hargreaves Landsdown analyst Susannah Streeter. The price of copper fell 4.3 percent to a one-and-a-half year low of $8,576 a ton. Zinn went down even more steeply. The metal used for food cans lost more than eleven percent at times, and a ton of the heavy metal recently cost $26,600, down 8.5 percent.

Government bonds were in demand, causing the yield on ten-year federal bonds to fall to 1.403 percent.

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